The ceasefire announced by the USA and Iran are still underway; the Hormuz Strait has just reopened with hundreds of ships finally moving through the pass carrying, huge loads of LPG from the region.
When the country is finally warming up to an EV wave – Indians bought 2.19 Electric Vehicle 4W during FY 2026, the Karnataka State Government run by the Indian National Congress Party has increased the Lifetime Tax rates on Electric Vehicles.
Adding salt to the injury, existing owners of EVs too have to pay retrospective taxes on their beloved vehicles.
Chief Minister Siddaramaiah-led Congress Government has budgeted INR 5,300 Cr during FY 27 towards providing free buses for women in the state, even as cash strapped transport authorities are scrambling for funds.
According to the new state law, Electric Vehicles which are priced over INR 25 lakhs shall attract a LT of 10%, making the on-road price highest in the country for such vehicles.
EVs priced INR 10-25 lakhs shall attract 8% LT and those priced below INR 10 lakhs shall pay 5% towards Lifetime Taxes.
For existing owners, the tax rates will range from 93% to 25%, depending on the age of the vehicle, adjusted from the date of their purchases according to reports.
As of April 2026, there are approximately 737 fuel stations within the city of Bengaluru and over 280 in the Bangalore Rural area which includes Nelamangala, Devanahalli, Yelahanka, Hoskote and Anekal.
One of the fuel pump owners in Bangalore city, who requested anonymity said that over half of the fuel stations by the three OMCs HP, BP and IOC are owned by local politicians.
The three Oil Marketing Companies hold a 90% market share while Shell, Nayara, Jio-BP contribute the rest.
According to recent data, there are 75+ CNG fuel stations in Bangalore Urban areas and over 40 in Bangalore rural.
The 1.3 crore vehicles on Bangalore roads – 900,000 of them 2W, consume an estimated 3-3.5 mn litres of petrol daily. Diesel vehicles and commercial infrastructure consume 4.8-5 mn litres every day fuelling massive air pollution in the city.
Maharashtra sold 34,066 EV 4W during FY 2025-26, while sales in Karnataka grew ~40% YoY to 24,201 units, contributing 11% to national sales, according to to data released on VAHAN portal.
EV penetration in Karnataka’s passenger vehicle segment reached approximately 7.2%, significantly higher than the national average of 5.1%.
65% of Karnataka’s EV 4W registrations were concentrated in the Bengaluru Urban district due to the city’s high density of tech-savvy early adopters and a robust corporate charging infrastructure at major IT parks.
Karnataka maintained its lead as the state with the highest number of public charging stations in India, exceeding 5,500 points by March 2026, reducing range anxiety for intracity as well as intercity travel.
In the EV segment, Tata Motors with Nexon and Punch (35%) along with MG JSW Motor’s Windsor and EV (34) command a total market share of 69% in India, leaving behind M&M with 18% and others such as BYD, Hyundai, Maruti and Tesla with 12%.
Editor’s Note
The latest levies passed under the Karnataka Motor Vehicles Taxation (Amendment) Bill 2026 is a shot in the arm for EV manufacturers and enthusiasts alike.
It is noteworthy that Entrepreneur Chetan Maini launched India’s first EV two decades back in the Silicon Valley of India under the name “Reva”, a short for of his mother Ms. Revathi.
Chetan was an engineer who developed a passion for solar and electric vehicles while studying at the University of Michigan and Stanford University and launched REVA in 2001, after a 7-year research.
Reva was eventually sold to Mahindra Group in 2012, which used the native technology to build its EV line-up.
A growing love affair by consumers towards EVs would clearly dent the fuel-retailing business, eventually.
The BJP-led Delhi Government has unveiled an aggressive and phased roadmap under the Draft Delhi EV Policy under which the sale of all commercial and passenger ICE vehicles shall be stopped from 1 Jan 2030 onwards.
According to this proposed policy, all taxis sold from 1 Jan. 2027 shall only be Electric and from 1 Jan. 2028, all buses and 2W sold in the National Capital region shall only be EVs.
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